On 13 June, FMO signed a USD 20 million green line facility with Banco BAC San Jose S.A. (BAC) in Costa Rica. Of this USD 20 million, USD 5 million is provided on a committed basis, with the option for the client to further activate the line as demand from its clients for green loans grows. Green line financing is a way for FMO and its Financial Institutions clients to actively promote sustainable initiatives and endorse 'green' business. This green line supports the development of green financial products in Costa Rica, a country that aims to reach carbon neutrality by the end of 2021.
BAC is the largest privately owned bank in Costa Rica and is part of the Central American BAC Credomatic Group, owned by the Colombian Grupo Aval conglomerate. With environmental criteria set, the facility will support BAC to provide its clients with funds for energy efficiency and renewable energy projects, such as installation of solar panels at households or businesses, construction of 'green' buildings, and replacement of inefficient (agricultural) equipment.
Linda Broekhuizen, Chief Investment Officer at FMO, said: “This is an important example of how FMO is realising its ‘halving footprint’ objective for 2020. By having environmental criteria set for the use of our funds, we aim to support responsible and sustainable finance solutions for durable change in Costa Rica. BAC has been a client of FMO for many years and considered a strategic partner for innovation in the Central American region.”
